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City of Missoula, Montana Item to be Referred to City Council Committee Committee: Administration and Finance Item: Resolution levying final assessments for pooled special sidewalk, curb, gutter and alley approach bonds, series 2010 Date: July 23, 2010 Prepared by: Marty Rehbein, City Clerk Initiated by: same Action Required: August 2: Set a public hearing August 23: Conduct public hearing and adopt final resolution Recommended Motion: August 2: Set a public hearing on August 23, 2010, on a resolution levying assessments for pooled special sidewalk, curb, gutter and alley approach bonds, series 2010 August 23: Adopt a resolution to levy a special assessment and tax upon all property situated within pooled sidewalk, curb, gutter and alley approach bonds series 2010 of the city of Missoula, Montana, in the total amount of $885,000 excluding debt service, to defray the cost of installing sidewalks, curbs, gutters and alley approaches pursuant to resolution number 7539 awarding the sale of bonds. Timeline: Referral to committee: July 26, 2010 Committee discussion: July 28, 2010 Public hearing (if necessary): August 23, 2010 Deadline: September 13, 2010 Background and Alternatives Explored: The City Council has ordered the installation of sidewalk, curb, gutter and alley approach improvements on various parcels throughout the city during the past year. The improvements have been constructed. Some of the property owners have elected to finance the costs of the improvements with the city. The city pools all the sidewalk, curb, gutter and alley approach projects together each year and issues bonds to provide financing for the property owners who elect it. On May 17, 2010, the City Council adopted a resolution issuing a call for the sale of bonds to finance the costs of these improvements, and on June 14, 2010, the City Council adopted Resolution 7531 awarding the sale of the bonds to the lowest responsible bidder. The next step in the process is to levy the assessments on the properties where the improvements were constructed to repay the bondholders. State law requires the City conduct a public hearing before levying the final assessments and to mail notices to the property owners to notify them of the ---PAGE BREAK--- public hearing. The City Clerk office will mail those notices to the property owners on August 5, 2010, and will publish notice in the Missoula Independent. If the City Council adopts the resolution to levy the final assessments, property owners will see the first installment on their property tax bills beginning in November. Financial Implications: The resolution itemizes the principal assessment for each property owner. Simple interest accrues annually on the outstanding principal balance for each assessment. Once the City issues bonds to finance a project like this, the City is obligated to the bondholders to repay the debt. Defaulting on that commitment would damage the City's credit rating. State law and city council policy provide for a special assessment on the property where the improvements were installed to repay the bonds. Attachments: Resolution Exhibit